Online Banking and Savings Accounts

Banks and savings organizations that are in the business of providing
online accounts are normally able to pass on lower operating costs.
In the form of reduced fees, and even, potentially higher
yields of interest to the customer.

While depositor's needs differ, and
everyone should use their own criteria for evaluating their place
of financial choice, some of the points are;

Managing & Tracking Funds -
a major strength of going online, most banks are able to post
transactions within a very short time lag, along with those
that are pending, to help you keep a running balance. Recent transactions
that are in process might show $1 to remind you of the upcoming
deduction. By questioning this delay, and how close the transactions
are to real time, should help eliminate any mystery right up front!

Monthly maintenance and other fees with online accounts are conveniently
traced and therefore, made easily planned-for in upcoming billing
cycles.
Auto deductions usually act to save time, consolidate, and simplify
things, besides greatly reducing the wait period for mail delivery.
Turning the focus on timely payments. Which could in-turn
come act on a bill payers credit history.

Under most circumstances, online interfaces have been employed
that promote user-friendly and efficient management of your funds. As a caveat,
however, interfacing with some banks may
mean that you still take on the load of Quicken or Money software.

Account History -
Many banks and institutions will show an ongoing transaction cycle.
For example, maintaining records for 6 months prior isn't
that uncommon though transaction records can be kept for 12 months
or more. If your record keeping requirements exceed what is being
provided, you
might find yourself
relying
on self-printouts
or downloads
of your statements. Matching your
record
keeping
needs with those of the bank will help bring an amicable result.

Fees & Access -
it's always best to be fully aware of any associated fees that
may be sent your way, including for transfer of funds ( for both
between accounts
and within the country) as well as for overdrafts, and ATM transactions
and related surcharges as this applies. Can monies be access via
local machines without
fees in connection with their online setup -- which is typically
a 'no'? If not, what is the most immediate way of removing funds
or transferring in the event they are
needed or for an emergency?
Also, what if any are the fees for running under minimum balances?

For good reason, some of which is to keep pace, no doubt, the traditional
banking centers (brick and mortar) continue to evolve their online
abilities. Now allowing
for online
access to
accounts (which isn't the same as an online account, per se) while
touting this fact at many of their local outlets. However
don't get confused about any
new
fees
being
introduced
as
a result of going online through them.
If
checking
accounts
might necessarily be attached to a savings account, for example,
be aware of the implications and fees although many online
banks simply don't allow checks. Also,
if the bank is attempting to cut costs and deter physical transactions,
and you are considering going online altogether, their offerings
as a total package should be competitive with the big internet
bankers.

Making
withdrawals in excess of six a month can incur fees (government
regulation D) . Additionally, wait times for the initial deposit
might take up to ten days but this
is normally the extreme. While transfers might take about three
days, even though it is considered "online".

Interest -
interest due can be based on simple interest, or compounded.
If compounded, is the rate arrived at by continual, monthly,
quarterly or semiannual compounding methods? Too, the rate of interest
might be variable and subject to change over future periods.

Security -
since all internet activity carries a degree of risk, take
every and all necessary measures to help ensure tightness of
security.
Precautions
like upgrading your security and firewall protection, and practices
like visiting sites with whom you are already aware, and storing
usernames and passwords (integrating the use of special characters
wherever possible) all generally pay in their own way.

Are there guarantees in place to guard against fraudulent transactions?

Insurance -
Probably the most important aspect of the savings account is whether or not funds
on deposit are covered by FDIC insurance.

Site Downtime -
Scheduled maintenance times interfere with customers activity
albeit rarely. Since the account is being
administered online, it might be wise to verify that any regular
scheduled maintenance not conflict with your intended
schedule.

Customer Service &
Response Time -
This is the important link between you and your funded account,
the customer service provided. As with everything, some companies
have earned
better reputations for satisfying customers within allotted
timeframes. By researching companies ahead of time, you are
likelier to find success.